Mohit Joshi says IT companies will adopt 'three-pronged' strategy for revenue and profitability predictability
 "Tech Mahindra embarks on 'transformative year' with focus on revenue, costs: CEO")
Ashutosh Mishra New Delhi
Tech Mahindra CEO and managing director Mohit Joshi said the company plans to embark on a “transformation year” by making fresh investments and “optimising” costs.
The company's operating revenue for FY24 declined 2.42 per cent to Rs 51,996 crore from Rs 53,290 crore in the previous fiscal. “FY25 will be a transformational year for the company, highlighted by new investments in key accounts and service lines. We will drive consolidation of portfolio companies, focus on our largest accounts and prioritise cost optimisation,” Joshi said in a letter to shareholders in the company's annual report.
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“This effort will continue in FY26 with the aim of completing the integration of our portfolio companies and by FY27 we expect to reach an optimized position with an improved structural mix and pyramid.”
Joshi said the company will take a “three-pronged” approach in terms of growth, operations and organisation in FY27, “which will help drive top-line growth, achieve industry-standard margins and most importantly ensure high predictability of revenue and profitability.”
“Over the last few years, we have operated in a dynamic environment where markets are evolving at breakneck speed, customer expectations change overnight and disruptive innovations emerge seemingly from nowhere.”
“Traditionally, organisations embarking on a technology transformation journey have faced difficult trade-offs as achieving massive scale often comes at the expense of agility. Ultimately, this scale and speed duality has morphed into the need for scale at speed. This has certainly been accelerated by AI (artificial intelligence) and it is this imperative that defines Tech Mahindra's promise – Scale at Speed,” Joshi said.
Joshi said the company is focused on training its employees: “We have programmes across the Mahindra University curriculum and an extensive accumulation of learning programmes is underway.”
